Board control and earnings quality - An empirical analysis from China's listed companies

摘要

This paper explores the role of board in controlling firm's earnings quality from board structure and directors' working attitude, based on Chinese listed companies from year 2002 to 2005. The results show that firms with larger board size or firms with the board of audit committee have more significantly positive position on earnings quality and information added capability. The positive relationship between earnings and returns is the strongest when the board size is of 13. Independent directors, however, have no significant positive effect on earnings quality.